Yesterday, a friend was crying and told me that he had lost 2 million yuan after three years of trading cryptocurrencies.

I asked him: Do you know whose money you're making?

He was stunned: Isn't it just making money from the rise and fall of coin prices?

This is the cognitive level of 99% of retail investors.

The crypto world is really not about making money from coin prices, but about making money from human nature. You think you're buying coins, but actually you're buying people's hearts.

Those who truly make big money never look at K-line technical analysis. They study: Who are the holders of this coin? When will these people panic? When will they become greedy?

Retail investors like to chase high on the limit-up, while institutions prefer to buy the dip when blood is flowing. It's not because they are smarter, but because they understand their opponents better.

Studying technical indicators a thousand times is not as good as understanding when retail investors are most likely to cut their losses.